Rheinmetall Warns ATACMS Ramp-Up Will Take Years, Complicating US Stockpile Rebuild
LMT sits 38% above its 52-week low of $423.91.
Summary
Rheinmetall's CEO cautioned that scaling ATACMS missile production with Lockheed Martin will take 'much longer' than two years, with first revenue not expected until 2028. This follows a July MoU to jointly produce the missiles at Rheinmetall's German plant, with facilities set up next year. The timeline underscores the challenge for the US to quickly replenish stockpiles depleted by the Iran conflict, despite Lockheed's recent $8.4B Precision Strike Missile contract and strong Q2 backlog. The joint venture still needs approval but has US government backing, targeting global demand for the next 15 years.
At the time of this announcement, LMT was trading at $583.92 on NYSE in the Manufacturing sector, with a market capitalization of approximately $134.5B. The 52-week trading range was $423.91 to $692.00. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: Reuters.